Former advisor to hockey star Federov indicted for fraud

An investment advisor who formerly managed the business affairs of hockey legend Sergei Federov was indicted in South Florida on federal charges of running a $20 million investment fraud.

Joseph Paul Zada, who formerly lived in Wellington and now resides in Pointe Shores, Mich., was charged with 27 counts of mail fraud, wire fraud, interstate transportation of stolen property and money laundering. The indictment said Zada attracted over $20 million from over 20 investors by promising them their money would be invested in oil ventures, but the money instead went to support his lavish lifestyle and pay returns to previous investors.

Zada threw extravagant parties, drove luxury cars and maintained expensive homes to portray himself as a successful businessman with Saudi Arabian connections, according to the indictment.

Federov, a former star with the Detroit Red Wings, previously won a $43 million judgment against Zada regarding an unpaid loan and forged signatures.

Zada could face up to 20 years in prison on the most serious court. The U.S. Attorney’s Office for the Southern District of Florida credited the FBI and the Florida Office of Financial Regulation for helping with the investigation.

The Securities and Exchange Commission filed a civil complaint against Zada in 2010 over an alleged Ponzi scheme.